Inflation in Cyprus rose by 1.2% in March compared with the same month in 2025, picking up pace after slower increases earlier in the year. The rise has been tied to the ongoing conflict in the Middle East, which has affected overall price levels.

And according to the Statistical Service, the Consumer Price Index increased by 1.21 points in March, reaching 101.07, up from 99.86 in February 2026.

Among the main categories, agricultural products showed the largest annual increase at 13.3%. Electricity and water posted the biggest decline, falling by 12.9% compared with March of last year.

From February to March 2026, petroleum products recorded the most notable monthly change, climbing by 9.1%.

A report from rating agency Morningstar DBRS warned this week that the island’s heavy dependence on tourism and shipping makes it particularly vulnerable to disruptions from the Gulf.

Cyprus has had one of the lowest inflation rates in the eurozone, while Greece’s rate last month (at least the European Union-harmonized consumer price index) was at 3.3%, according to the provisional figures that Eurostat released earlier this week.

Source: Ekathimerini.com